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Master of Business Administration-MBA Semester 3

MU0012 Employee Relations Management

Assignment Set- 1

Q.1 Explain how the strategy of an organisation influences its employee policies?

Ans:- The strategy of a firm is a match between what it can do (internal capabilities) and externalrelationships. Added value (a measure of the business's success) is created by competitive

advantage based on distinctive capabilities. Few capabilities are distinctive, but effective systems

of regulation and relationships within the firm that are based on mutual trust and committment isone area.

For personnel/HRM specialists to be valued members of the strategic manager group they must be

able to offer expertise - value added - which will contribute to the development andimplementation of the firm's strategic policies and programmes. If they contribute such expertise

and if this is valued by the senior management of a firm - then personnel will be accepted into the

strategic decision-making circle. This essentially is amembership and power/influence issue.

What does the firm need?

the right people

in the right place

at the right time

at the right cost.

The labour factor of production is a cost and the commercial, market-forces argument is that it

must give value for money. Many propositions may now stem from such a position.

the firm grows and prospers with the people it has or it can get hold of these at the time itneeds them

the behaviour of its members should not jeopardy the firm. Individuality is important but

loose, unco-ordinated collections of individuals who just go their own way and do not

support each other or demonstrate trust and loyalty - are unlike to work so well

people in the organisation must want to be members and want to perform for it with effort

and creative ingenuity.

The organisation in return (part of the social and economic exchange) needs to value itsmembers are their contribution. If it does not demonstrate such value - materially and

socially - then members will become detached.

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Strategy requires long-term goals, broad programmes and allocations designed to achieve these.

Each programme represents a policy for action. Funds, assets and people must be allocated or

assigned to programmes. Of course every time we employ someone - this has to be resourced.

Strategic plans are

typically informed by the organisation's mission and purposes - what those who own the

business want to achieve. Owners can be sole proprietors, partners, majority shareholders,

instititional shareholders, small shareholders. The stakeholder notion is important - forsuppliers, collaborating firms, government, the local community and of course employees -

are all stakeholders.

developed in response to the external and internal influences that the organisation findsitself subject to.

So what then are examples of human resource strategies and programmes?

containment of trade union influence?

recruiting the best

keeping costs down. Becoming flexible and lean but empowering our crew with the best

training, rewards and equipment to do the job

developing a culture within the organisation which enables each member to contribute

creatively, competitively with their best effort and ability

becoming a learning organisation

training everyone to be competent in their present job at a level of mastery and to extend

beyond this for continued occupational development - the future (but not so far intothe

future that the firm wll never be able to take advantage of it!)

down-sizing. Changing the relationship between the organisation and those which provide

it with services - buy in rather than employ our own

linking rewards to measured performances

staying clear of the pitfalls offered by employment law.

being an equal opportunities employer through our behaviour rather than imposed and

expensive systems of control

make sure that when we employ people we do so in ways that are systematic, reliable, costeffective and properly administered

to be seen by our employees and others to be a good employer

Many influences are outside the control of an organisation's managers. Government may pass laws.A firm's products and services may be under pressure from international competition. The industry

may be in decline. The economy may be in turmoil. Key staff may leave. Responses are howeverneeded to meet these contingencies. The organisation has to cope/adapt to opportunites and threats

if it is to retain its position and prosper. Thus we can speak of contingency management.

The business strategies which take precedence when boards of companies meet are:

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finance

company competitiveness and positioning

product and market development

Matters relating to the labour force may be lower down on the agenda rather than being front

running items - unless they are cost cutting items. Yet managers may endeavour to define HRMstrategies particularly where there is a belief that investment in the quality and enthusiasm of the

work force will add to competitiveness, quality and overall business performance.

Management's actions may belie what they say their HRM strategy is. The danger is that

declarations about human resource intentions are only lip-service statements. Employees may see adisparity between what is said and managerial action/ inaction. Compare programmes promoting

training and a participative company culture when in the same breath redundancies are anticipated

associated with down-sizing.

Strategy and Tactics, Maintenance and Improvement

Strategic management involves ambiguity, the non-routine, complexity, organisation wide

implications and significant rather than small-scale change. Circumstances are driven by

environmental pressure, imposed changes and perceived positions.

Strategic needs must be analysed, objectives agreed and translated into everyday programmeswhich devolve to line managers for implementation. They must be communicated, resourced and

controlled. Information systems are needed with staff involved and committed.

Yet if market turbulence and competitive forces are so intense, policy and programme forming andreforming can be so rapid as to make tactical and strategic levels confused. Having good feedbackabout progress of tactical (operational) programmes is essential. Programme results must be

evaluated and components adjusted. As time frames become shorter, plans may only be half

completed before a rehash or U-turn is needed. So the best strategies may be outlines only withobjectives and specific programmes changing to fit operational circumstances.

A strategy (the game plan) will involve particular tactics - their form mostly represented by

operational programmes and projects - DOING. Departmental arrangements and programmes of

work are manifestation of tactics. Each business unit has its budget i.e. allocations of money andstaff organised to secure day-by-day results.

Tactics can be maintenance tactics (keep the thing going) orimprovement tactics. Maintenance -

so that performance does not slide/atrophy - requires organising and resourcing. An operational

unit may need to address a number of projects (tactics for improvement). A sales campaign, marketresearch project, a training course or quality control programme are examples. A new operational

unit may need to be established. Its project or projects represent tactics that contribute to the

strategic objectives of the business.

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One such programme to drive both maintenance (market entry strategy) and improvement (order-

winning strategy) might be to secure ISO 9000 accreditation.

The ISO 9000 Organisation

In a smaller organisation, business and HRM strategy may be indistinguishable however for largeand small organisations a commitment to quality may be defined by the corporate missionand

implemented via ISO 9000 accreditation (the tactical programme).

Other tactics may be in support: employee training and communications, marketing promotions

and investment in better working methods and equipment. The organisation may forego short-termprofits and even seek further capital funds to secure ISO accreditation

The ISO requirements may spread through the firm as policy, procedure and controlling

mechanisms. Even say-to day operations in the personnel section may be defined by ISO 9000

specifications of standards and procedures e.g. governing wage administration, delivery of trainingservices, excellence in recruiting or staff communication and consultation.

Explain the type of strategic concerns and objectives that may exist for human resource

management in TWO of the following organisations. What form might strategic programmes ofpolicy and action take (give examples).

a small entrepreneurial business

a UK owned multi-national

a foreign owned multi-national with UK operations

a secondary school

a National Health hospital trust a local authority

Seven dimensions of organizational culture that influence the employee reflection process thatultimately leads to whistleblowing behavior are presented.

These include :1. vigilance

2. engagement

3. credibility4. accountability

5. empowerment

6. courage, and7. options.

Key considerations within each dimension are discussed and a compliance framework is used to

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identify strategies for encouraging a culture that supports employee communication, questioning,

and reporting of illegal, unethical, and illegitimate practices within organizations.

Q.2 Define Employee Engagement. What are the different factors that influence employee

engagement?

Ans: -Employee Engagement is the means or strategy by which An organisation seeks to build apartnership between the organisation and its employees, such that:

Employees fully understands and is committed to achieve the organisations objectives, and

The organisation respects the personal aspirations and ambitions of its employees.

It is seen largely the organisations responsibility to create an environment and culture conduciveto this partnership.

The 3 aspects of employee engagement

Global studies suggest that there are three basic aspects of employee engagement:

The employees and their own unique psychological make up and experience.

The employers and their ability to create the conditions that promote employee

engagement. Interaction between employees at all levels.

Employee engagement creates greater motivation within employees for the work they do andincreases their commitment to the organisation. It is about creating an enthusiasm for their roles,

their work and the organisation, and ensuring they are aligned with the values of the organisation,

well informed and well integrated with their colleagues and the fabric or culture of the

organisation.

Ffactors influence employee engagement

Research by the Institute of Employment Studies (IES) identifies a number of factors which

influence employee engagement:

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Source: IES Survey, 2003

Many other factors exist that might apply to your particular business and the importance of thesefactors will also vary within your organization.

Q.3 Write notes on the following decision making model:

a. Incremental Model

b. Garbage Can Model

Ans:- a. Incremental Model

The incremental model is an intuitive approach to the waterfall model. Multiple development

cycles take place here, making the life cycle a multi-waterfall cycle. Cycles are divided up into

smaller, more easily managed iterations. Each iteration passes through the requirements, design,implementation and testing phases.

Example A working version of software is produced during the first iteration, so you have workingsoftware early on during the software life cycle. Subsequent iterations build on the initial software

produced during the first iteration.

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l

Incremental Life Cycle Model

Advantages

Generates working software quickly and early during the software life cycle.

More flexible less costly to change scope and requirements.

Easier to test and debug during a smaller iteration.

Easier to manage risk because risky pieces are identified and handled during its iteration.

Each iteration is an easily managed milestone.

Disadvantages

Each phase of an iteration is rigid and do not overlap each other.

Problems may arise pertaining to system architecture because not all requirements are

gathered up front for The entire software life cycle.

b. Garbage Can Model

The garbage can model is a theory within the science ofpublic administration that explains

organizational decision making from a systemic-anarchic perspective. Decision-making is

accidental and is the product of problems and solutions that get associated randomly.

Development of the garbage can model

The Garbage Can Model of organizational theory was developed in 1972 by Michael D. Cohen,

James G. March andJohan P. Olsen.

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It was developed in reference to "ambiguous behaviors", i.e. explanations/interpretations of

behaviors which at least appear to contradict classical theory. The Garbage Can Model was greatly

influenced by the realization that extreme cases of aggregate uncertainty in decision environments

would trigger behavioral responses which, at least from a distance, appear "irrational" or at least

not in compliance with the total/global rationality of "economic man" (e.g. "act first, think later").

The Garbage Can Model was originally formulated in the context of the operation of universities

and their many inter-departmental communications problems.

The Garbage Can Model tried to expand organizational decision theory into the then uncharted

field of organizational anarchy which is characterized by "problematic preferences", "unclear

technology" and "fluid participation". "The theoretical breakthrough of the Garbage Can Model is

that it disconnects problems, solutions and decision makers from each other, unlike traditional

decision theory. Specific decisions do not follow an orderly process from problem to solution, butare outcomes of several relatively independent stream of events within the organization."

The model was based on a computer simulationcoded inFORTRAN. The coding was included as

an appendix in the original 1972 article , which was the first time a coding sequence appeared in a

social science article.

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Garbage Can Model

Streams of events within the Garbage Can Model

Four of those streams were identified in Cohen, March & Olsen's original conceptualization:

Problems : Problems require attention, they are the result of performance gaps or the inability to

predict the future. Thus, problems may originate inside or outside the organization. Traditionally, it

has been assumed that problems trigger decision processes; if they are sufficiently grave, this may

happen. Usually, however, organization man goes through the "garbage" and looks for a suitable

fix, called a "solution".

Solutions : They have a life of their own. They are distinct from problems which they might be

called on to solve. Solutions are answers (more or less actively) looking for a question. Participants

may have ideas for solutions; they may be attracted to specific solutions and volunteer to play the

advocate. Only trivial solutions do not require advocacy and preparations. Significant solutions

have to be prepared without knowledge of the problems they might have to solve.

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Choice opportunities: There are occasions when organizations are expected (or think they are

expected) to produce behavior that can be called a decision (or an "initiative"). Just like politicians

cherish "photo opportunities", organization man needs occasional "decision opportunities" for

reasons unrelated to the decision itself.

Participants;They come and go; participation varies between problems and solutions.

Participation may vary depending on the other time demands of participants (independent from the

particular "decision" situation under study). Participants may have favorite problems or favorite

solutions which they carry around with them. They may carry these around until they are able to

share them with others and either get assistance in resolving the problem or providing a solution to

a problem.

Why "garbage cans"?

It was suggested that organizations tend to produce many "solutions" which are discarded due to a

lack of appropriate problems. However problems may eventually arise for which a search of the

garbage might yield fitting solutions.

Probably the most extreme view (namely that of organizational anarchy) of the Carnegie School.

Organizations operate on the basis of inconsistent and ill-defined preferences; their own processes

are not understood by their members; they operate by trial and error; their boundaries are uncertain

and changing; decision-makers for any particular choice change capriciously. To understand

organizational processes, one can view choice opportunities as garbage cans into which various

kinds of problems and solutions are dumped. The mix of garbage depends on the mix of labeled

cans available, on what garbage is currently produced and the speed with which garbage and

garbage cans are removed.

Critiques of the Garbage Can

The Garbage Can model was criticized by Bendor, Moe, and Shotts in their 2001 American

Political Science Review article, "Recycling the Garbage Can: An Assessment of the Research

Program." In addition to a number of substantive critiques, the paper notes that the informal theory

and the computer model are dramatically inconsistent with one another.It is more discription thanprescription of the decision-making, and it just deals with part of the whole process of decision-

making.

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Q.4 Sanjay is a trade union leader with twenty years of experience in an industrialorganisation. One of the laborers in the organisation met with an accident while on duty.

What will be the different means by which he will ensure that the laborer is well

compensated for the work-related injury?

Ans: -If you have been injured at work, your employer's workers' compensation insurance carrieris responsible for medical bills and costs associated with your work injury. If there is a period of

time in which the carrier has not accepted your claim as work-related, some medical bills may besubject to reductions.

Benefits : If the workers' compensation insurance carrier accepts that your injury is related to

work, you will be entitled to medical and money benefits. These may include medical bills,prescription costs, bills for physical therapy and rehabilitation, travel to and from medical

appointments and payment for any permanent disability arising from your work injury.

Considerations : There may be a period of months or years between your injury and the carrieraccepting it as work-related. During this time you may be liable for your own medical bills and

should pay these bills before seeking reimbursement from the insurance carrier. If you do not haveyour ownhealthinsurance, an uninsured patient discount of roughly one-third may be offered by

the medical facility. This is similar to the bill reduction or discount typically offered to insurance

companies.

Expert Insight : Dealing with medical bills and a workers' compensation insurance carrier

simultaneously can be expensive and time consuming. You may wish to seek representation by an

experienced and qualified attorney; this can speed up the process of having your claim acceptedand your medical bills paid by the carrier.

Your workers compensation attorneys from Madison Law Group have seen a lot of people suffer

and even die because of work-related accidents. Your workers compensation attorneys definitelyunderstand the physical pain and mental anguish it can give to you or your family. Without proper

workers compensation insurance, you won't have any money to support your loved ones when you

will stop receiving wages because of your disability. Without your workers compensation claims,you won't be able to recover the costs of your medical expenses.

The California Worker Compensation Law aims to offer

protection to workers that suffer from personal injuries while intheir respective jobs. The worker compensation can be used to

cover for the basic medical bills as well as support disability

benefits of employees.

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Anyone can ask for worker compensation claims as long as he works as an employee for another

person or company. This also means that he must be covered with worker compensation insurancejust in case he meets an accident while in the workplace. It also doesn't matter if you're only an

independent contractor of the company. You are still entitled to worker compensation claims.

Benefits of Worker Compensation

There are different types of benefits that you can get out of worker compensation. It depends onthe severity of the injury that you've sustained.

First we have temporary total disability. The worker compensation insurance is given to anyperson who is unfit to report to work and is currently under medical care. Once he has already

recovered, he can start working on light duty and his injury will no longer be under the total

disability worker compensation insurance.

You also have temporary partial disability. A person can obtain his worker compensation claimseven if he is still under medication or currently in the process of healing. The amount of work that

can be performed will be less than what he used to do before his personal injury.

On the other hand, permanent partial disability worker

compensation insurance covers for the permanent medical

conditions sustained by the worker in the course of the injury.However, this doesn't really stop him from reporting to work. You

may have to work with a workers comp lawyer as there are a lot

of statutes that govern permanent disability. To ensure that youwill be able to receive the right worker compensation insurance,

you must talk to workers compensation attorneys right away.

Your workers comp lawyer will be the one to deal with yourworker compensation claims.

A slight variation of the above disability insurance is the worker

compensation insurance for permanent total disability. Before hecan obtain this, though, the employee still needs to prove to his

employee and his workers comp lawyer that he will never be able to report to work because of his

medical condition. Your worker compensation claims may depend on a number of factors,

including your age, training, education, and experience. These will be used to determine if you canno longer find a more suitable employment for your condition.

Lastly, you have worker compensation insurance for mutilation or disfigurement. As the name

implies, the worker compensation claims will be used for those who suffer form permanent

scarring.

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Why You Should Work with Workers Compensation Attorneys

Your workers compensation attorneys from Madison Law Group are here to ensure that your rights

as an employee are being protected. When you're in a workplace, you can still meet an accident.

You need not only the time to recover but also financial assistance for your disability, whethertemporary or permanent. Moreover, the worker compensation law is in accordance to the

California law.

We've met a lot of workers who are apprehensive with fighting for their rights. You should not be.

They are required to provide worker compensation insurance to their employees.

Workers compensation attorneys can also help you seek civil damages, along with your worker

compensation benefits. There are times when the injuries are caused by the negligence or harmful

acts of your co-workers or employers. You can claim your worker compensation damage bypursuing a civil case.

With their expertise, legal background, and resourcefulness, your workers compensation attorneysin Madison Law Group can assist you in determining who's at fault and how much you can receive

out of your worker compensation claim.

Q5. Describe the process involved in collective bargaining

Ans: - Collective bargaining is the process of negotiation between unions and employers

regarding the terms and conditions of employment of employees, and about the rights andresponsibilities of trade unions. It is a process of rule making, leading to joint regulation.

A collective bargaining process generally consists of four types of activities- distributive

bargaining, integrative bargaining, attitudinal restructuring and intra-organizational bargaining.

Distributive bargaining: It involves haggling over the distribution of surplus. Under it, theeconomic issues like wages, salaries and bonus are discussed. In distributive bargaining, one

partys gain is another partys loss. This is most commonly explained in terms of a pie. Disputants

can work together to make the pie bigger, so there is enough for both of them to have as much as

they want, or they can focus on cutting the pie up, trying to get as much as they can for themselves.

In general, distributive bargaining tends to be more competitive. This type of bargaining is alsoknown as conjunctive bargaining.

Integrative bargaining: This involves negotiation of an issue on which both the parties may gain,or at least neither party loses. For example, representatives of employer and employee sides may

bargain over the better training programme or a better job evaluation method. Here, both the

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parties are trying to make more of something. In general, it tends to be more cooperative than

distributive bargaining. This type of bargaining is also known as cooperative bargaining.

Attitudinal restructuring: This involves shaping and reshaping some attitudes like trust or

distrust, friendliness or hostility between labor and management. When there is a backlog ofbitterness between both the parties, attitudinal restructuring is required to maintain smooth andharmonious industrial relations. It develops a bargaining environment and creates trust and

cooperation among the parties.

Intra-organizational bargaining: It generally aims at resolving internal conflicts. This is a type

of maneuvering to achieve consensus with the workers and management. Even within the union,

there may be differences between groups. For example, skilled workers may feel that they areneglected or women workers may feel that their interests are not looked after properly. Within the

management also, there may be differences. Trade unions maneuver to achieve consensus among

the conflicting groups.

Collective bargaining procedures and structures

Collective bargaining in conducted at two levels:

sector or branch level, where so-called 'higher-level collective agreements' are concluded

between representatives of the appropriate employers' and trade union organisations; and

enterprise or organisation level, where collective agreements are concluded between local

trade union organisations and the management of the enterprise or organisation.

Contents of bargaining

The scope of sectoral or branch collective agreements scope is usually focused on the following

main topics.

Cooperation and communication between the trade union organisation and the

management. This covers matters such as: employers duties to consult, inform and decidein cooperation with the union; confidentiality clauses; and employers' support for trade

union activities by providing them with technical facilities etc.

Employment and working conditions. This covers matters such as: employment contractsand termination of employment; principles of redundancy policy in collective

redundancies; working time and working time schedules; and holiday and paid leave.

Wages and remuneration. This covers matters such as: the wage system and minimumwage tariffs; payment for working overtime and for working on holidays; extra payments

for difficult and risky working conditions and night work; and severance payments in the

event of collective redundancies.

Occupational safety and health. This covers matters such as: employers' duties andcooperation with trade unions in safety and health issues; preventive and corrective

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measures to improve working conditions and to reduce risk at work; and the establishment

of trade union safety and health delegates in companies.

Human resource development and other social issues. This covers matters such as:training and human resources development activities; and the creation and utilisation of the

Social Fund in enterprises (the Social Fund is financed - under Act No. 152/1994 in theCollection of Laws, as amended - by a minimum levy of 0.6% of paybill, and is mostcommonly used to subsidise the cost of meals provided for employees).

Resolution of conflicts between management and trade unions. This covers the

procedures to be applied in the event of serious disagreements between the social partners,

Q.6.Expalin the role of Human Resource Information System (HRIS) in people management

Ans:- The Human Resource Information System (HRIS) is a software or online solution for thedata entry, data tracking, and data information needs of the Human Resources, payroll,

management, and accounting functions within a business. Normally packaged as a data base,

hundreds of companies sell some form of HRIS and every HRIS has different capabilities. Pickyour HRIS carefully based on the capabilities you need in your company.

Typically, the better The Human Resource Information Systems (HRIS) provide overall:

Management of all employee information.

Reporting and analysis of employee information.

Company-related documents such as employee handbooks, emergency evacuationprocedures, and safety guidelines.

Benefits administration including enrollment, status changes, and personal informationupdating.

Complete integration with payroll and other company financial software and accountingsystems.

Applicant tracking and resume management.

The HRIS that most effectively serves companies tracks:

attendance and PTOuse,

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pay raises and history,

pay grades and positions held,

performance development plans,

training received,

disciplinary action received,

personal employee information, and occasionally,

management and key employeesuccession plans,

high potential employee identification, and

applicant tracking, interviewing, and selection.

An effective HRIS provides information on just about anything the company needs to track and

analyze about employees, former employees, and applicants. Your company will need to select aHuman Resources Information System and customize it to meet your needs.

With an appropriate HRIS, Human Resources staff enables employees to do their own benefits

updates and address changes, thus freeing HR staff for more strategic functions. Additionally, datanecessary for employee management, knowledge development, career growth and development,

and equal treatment is facilitated. Finally, managers can access the information they need tolegally, ethically, and effectively support the success of their reporting employees.

Master of Business Administration-MBA Semester 3

MU0012 Employee Relations Management

Assignment Set- 2

Q.1 Elucidate the importance of employee reward and also explain the various types of

employee rewards.

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Ans; - Many large companies today spend excessive amounts of money trying to make their

employees more productive. However, investing money in the productivity of your employees is

useless if the leaders do not understand how to recognize and reward those who are under them.

In addition to money, most people love receiving large amounts of praise and recognition for theiraccomplishments. A good leader will make his followers feel important. They will seek to create

environments where their followers are rewarded for their hard work and success. While theconcept of rewards and recognition is not new, it is an indispensable tool for leaders who want to

succeed.

To be a great leader, you will need to inspire your followers. They should understand yourprinciples and goals, and should be willing to follow them. You must build a strong bond with

them, and the best leaders are those who will inpsire their followers to do more than they thought

they were capable of. When you are a good leader, those that will follow you will be capable ofachieving virtually anything. However, this will not happen if you do not make them feel valuable.

It should be easy to see that monetary rewards are not enough. Many large companies spendmillions of dollars each year trying to make their employees more productive, and many of thesesame companies have high employment turn over rates.

The reason for this is because it is not enough to simply throw money at a problem in order to

solve it. There is something more tangible that must be done. The first thing a good leader willwant to do is pay attention to those that follow them. You will want to start by doing something as

simple as greeting your employees when they come to work. Ask them how they feel. While this

may sound like common sense, it is a good way to begin building a strong relationship, because itshows that you care about the well being of those beneath you.

It is always important to listen to what your followers have to say. Even if you are a talentedleader, it is important to remember that you are not omnipotent. Your followers may have thoughts

and opinions that can be valuable for your organization and beliefs. A failure to listen to employees

is one of the primary reasons why many businesses fail. If you fail to communicate, you will fail tosucceed. A leader can't lead if they don't have someone to follow them. Listen to your followers

and give them your full attention. It is also important for you to use positive language when

speaking to those that follow you. Thank them for work they've done, and make it clear that you

could not have succeeded without their help.

When you speak to them in a language like this, it conveys a message to them that they are

valuable. They will feel important, and will want to work hard to help you succeed. They will

understand that your success is connect to their own success. But it isn't just enough to tell themhow much you appreciate your work. You will want to show it. How do you do this? One way you

can accomplish this is by writing it down. Giving a "thank you" card to your employee will makethem feel valued. It is also important to make sure you fulfill any promises you make.

For example, never schedule a meeting with an employee that you are not able to attend. If you

promise to give an employee a pay raise, make sure it is done. Failing to make promises will show

that you are a weak leader who does not stick to your commitments. If you don't stick to your

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commitments, how can you expect your followers to stick to theirs? The only time you should not

be able to fulfill a promise is a situation where you are physically or mentally incapable of doing it.

Other than that, you should always fulfill your promises. When you reward your followers, youwill create a positive domino effect. Other employees will witness the reward, and will naturally

want the recognition for themselves. This will give them an incentive to work harder, which willbenefit you and your organization.

Types of Employee Rewards

Whether advancement is based on seniority or merit, rewards for employees fall into three

categories:

Financial

Non-financial

Psychological

It easy for us to understand financial rewards which include health and retirement benefits, pay

raises, bonuses, paid vacation and sick days. But what non-financial and psychological rewards

make a difference in the lives of the employee? Here are a few to consider:

Appreciation for employee's work by co-workers and management

Receiving compliments for their work from others

Little presents and recognition

Job security

Opportunity to learn new skills

Keep lines of communication open. This involves listening to employees but communication goes

both ways. Managers should not only listen, but tell employees when they are doing a good joband are appreciated. Take the time to answer employee questions and even explain to an employee

what needs to improve. Setting aside time to talk uninterrupted shows them that they are a

necessary element in the workforce. When they walk out of your office, they'll know what's

expected, what needs to improve and what they are doing right. Effective communication offersnon-financial rewards that benefit both employer and employee.

Employers must offer employee rewards that the company's employees find meaningful. Well-

managed employee rewards programs have tangible affirmative effects on the employer's bottom

line in several ways.

Retention:One effect a good employee rewards program has is a positive impact on employee

retention, as mentioned at Loyaltyworks.com.

Health and Safety: Solid employee rewards programs also have measurable positive effects both

on safety and workplace health, thus reducing overall health-care costs for both employee and

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employer.

Motivation: A crucial outcome of a good employee rewards program is enhanced motivation

among personnel, including helping the employees to make connections between professional

goals and personal goals, as described at Maritz.com.

Engagement : A solid employee rewards program also increases employee engagement in the

workplace, a factor that converts into improved performance and better customer experience.

Return on Investment: Employee reward programs provide a concrete return on investment

(ROI). Research has shown that employee recognition and rewards of a nonmonetary basis show a

greater return on investment than do cash awards, according to Loyaltyworks.com.

Bottom Line : Ultimately, from the employer's viewpoint, employee reward programs have a

positive effect on the bottom line for reasons such as the positive effect on health care costs,

performance, and workplace engagement.

Q.2 Explain what is Employee empowerment? What are the effects of employee

empowerment?

Ans:- Employee empowerment is a term used to express the ways in which non-managerial staffcan make autonomous decisions without consulting a boss/manager. These self-willed decisions

can be small or large depending upon the degree of power with which the company wishes to

invest employees. Employee empowerment can begin with training and converting a whole

company to an empowerment model. Conversely it may merely mean giving employees the abilityto make some decisions on their own.

There are employee empowerment workshops, books and articles. There is even a magazine called

Empowerment that can help a company converting to employee driven decision-making. Thethinking behind employee empowerment is that it gives power to the individual and thus makes for

happier employees. By offering employees choice and participation on a more responsible level,

the employees are more invested in their company, and view themselves as a representative ofsuch.

For employee empowerment to work successfully, the management team must be truly committed

to allowing employees to make decisions. They may wish to define the scope of decisions made.Building decision-making teams is often one of the models used in employee empowerment,because it allows for managers and workers to contribute ideas toward directing the company.

Autocratic managers, who are micromanagers, tend not to be able to utilize employee

empowerment. These types of managers tend to oversee all aspects of others work, and usually

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will not give up control. A manager dedicated to employee empowerment must be willing to give

up control of some aspects of work production.

When employees feel as though they have choice and can make direct decisions, this does often

lead to a greater feeling of self-worth. In a model where power is closely tied to sense of self,having some power is a valuable thing. An employee who does not feel constantly watched and

criticized is more likely to consider work as a positive environment, rather than a negative one.

One easy way to begin employee empowerment in the workplace is to install a suggestion box,where workers can make suggestions without fear of punishment or retribution. However, simply

placing a suggestion box somewhere is only the first step. Managers must then be willing to read

and consider suggestions. They might provide a forum where questions or suggestions receive aresponse, like a weekly or monthly newsletter. In addition, managers can hold a once monthly

meeting open to employees where all suggestions are addressed.

At least some suggestions have to be approved in order for employees to feel that they are havingsome impact on their company. Failure to approve or implement any suggestions reinforces that allthe power belongs to the managers and not the workers. Employee empowerment of any form can

only work when managers are willing to be open to new ideas and strategies. If no such

willingness exists, employee empowerment is likely to be non-existent.

The Effects on the Differentiation Process of the Employee Empowerment

In todays competitive work conditions, existence of a strong connection between the continuationof existence of company and the competences that provide the satisfaction to the customers,

between gaining this competence and modern management philosophy and practices, this theory

seems to be getting more obvious. Differentiation has become a vital competence that companiesshould possess in their competitive conditions. Employee empowerment is a philosophy and

arrangement that will help companies gain this vital competence.

Differentiation, is a risky process that provides changes or innovation in the process, outputs,

product marketing and after sales service of company for the purpose of gaining/getting extra value

which affect the customers priority for company and its products.

In the light of this definition, principal points which should be emphasized related to

differentiation are as follows:

Differentiation is a process which involves metamorphosing, changing and innovating. Differentiation is not a one time action but rather a process which is repeated

systematically

Differentiation is a process where with the way of taking into consideration the permanentand systematic risks/ and opportunities supporting the companies in getting harmony to

changing environment and successful in the global competitive environment.

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Differentiation is risky process; risk management based approach can be usefull to

achieving aims by differantiation.

The purpose of differentiation is to gain extra value that can affect the customerspreferences to company and its products

Differentiation is based on a communicative system where the internal and externaldimensions of company work co-operatively.

Differentiation is based on the philosophy of learning organization and on managementphilosophy that is supporting, developing and encouraging creativity

The following are mainly differentiation fields :

a. Management philosophy : This is an area of differentiation of the managerial

philosophy and application

b. Input: All the raw material, semi finished goods, the inputs in the form of human

resource qualifications are differentiation areas.c. Processes: All processes which are related to business management functions are areas

of differentiation (The procurement of inputs, the processes that transforms these inputs

into outputs, the marketing processes, the management process, human resourcesmanagement process, etc.)

d. Outputs: The outputs of all the process of company and the outputs in the form of

goods or services presented to customers are differentiation subjects.

The effect on the differentiation process of employee empowerment can be summarized as follows:

1. The shortening of differentiation process: With empowerment, employees attain thepower to take decisions related to their work directly. Hence changes that answer

customers demand/need (the structure of products, packaging, condition of payment etc.,)

are done directly in a short time by the employees doing the work.(Jhul et.al., 1997 : 103)Hence differentiation process to increase customers satisfaction gets shortened.

2. To create common responsibility philosophy in the differentiation: Employee

empowerment, is giving authority to managing of self work to employees and thus to

spread Deming Cycle of (planning, application, control, precaution) which is constituted offundamental of Total Quality Management philosophy to lower organizational level.(Jhul et al., 1997 : 103 ; Prybuto & Kappelman; 1995 : 16). The taking over of the

differentiation responsibility by every employee of company of their purpose of work, their

inputs, the process, the results by continuously improving them; the differentiation ofcompany is not limited to some units or individuals but rather a team work that spreads to

the whole company and can be provided/done by a team concept and responsibility.

3. The multiplying of the differentiation choices: Employee empowerment is to benefit

from all employees in company, as level of their authority in the work done by employees,gain from different competence and point of view to maximum. Thus, it can provide

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important richness in differentiation choices to many employees who have different

competences and they are given opportunity to take role in the process of differentiation4. To constitute an available employee infrastructure to the differentiation process: In

order to have employees empowerment there is a need for employee qualifications, such as

being open to development, having the skill of critical thinking, having high selfconfidence. These qualifications constitute the infra structure of the employees available inthe process of differentiation.

5. Provision of Organizational Learning support: Empowerment at specialization

dimension is empowerment dimension that the supportive and simplifying of usingeffective authority given to employees. Specialization of employee is expected by

following news, scientific publications, meetings and researches relevant to work done

continuously. The management also is to support, facilitation and encouragement forlearning and self development efforts relevant to work of employees through different

means, methods and opportunities. For example, the use of wage system based on skill, the

use of self development, the following of the developments related to work, Self-

development types of criteria for performance appraisal, supporting employees throughparticipation in scientific meetings like seminars and conferences and so on. This learning

system which works throughout the organization is a strategic element of differentiation

process.6. The increasing of the creativity: In the empowerment, the working of the employees in

meaningful, important jobs where they feel sufficient is a pre-condition. This application is

an indispensable basic element of creativity that constitutes most important source to

support differentiation.7. The increasing of Motivation and Work satisfaction: Empowerment provides an

atmosphere where employees feel efficient and as owners of the work; serving a need for

self-actualization and accomplishment of employees. This atmosphere increases

employees

self respect, work motivation and work satisfaction. (Robins et al., 2002: 442;Jhul et al., 1997: 103; Chu, 2003: 507). By being in the management of work, employeeswould have high job satisfaction, which will eventually facilitate making changes that will

increase customers satisfaction

Q.3 Write notes on:

a.Payment of Wages Act 1936

b.Employee State Insurance Act 1948

Ans;- Payment of Wages Act, 1936:

The Payment of Wages Act was passed in the year 1936 for a certain class of persons employed in

the industries. It is meant only for certain classes of employees.

This act was passed because of the reasons of injustice done to the employers in the way o

1. Wrongful Deductions.

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2. Untimely Wages.

3. Unreasonable Deductions.4. Payment of Wages in Kind.or any other problem associated with the Payment of Wages.

This act also provides for the remedies available to employees in such cases. This act states in what

form the employee should be remunerated and also that he should be paid at regularly intervals.

Applicability:

According to Sec. 1 of the Payment of Wages Act, 1936 its applicability is:

1. It is applicable to the whole of India.

2. It is applied on any person employed in a factory OR employed in any railway by a railway

administration, including the persons employed directly or through a sub-contractor by a person

having a contract with the railway administration.

3. The state Government may apply the provisions of this act to the persons employed in any

Industrial or other establishment by giving a 3 months notice.

4. In case of Industrial establishment owned by central government, with objectives not confined to

one state, such notification can be issued in consultation with the Central Government.

5. In various shops, this Act has been extended to shops and establishments also.

Non-Applicability:-

According to Sec. 1(6) of the Payment of Wages Act, 1936 as this act is meant for the benefit of

Industrial employees not getting high wages, therefore this Act does not apply to persons whose

wages exceed Rs. 1600 per month.

This act does not make any distinction between employees with reference to nature of work carried

on by them.

Wages:-

According to Sec. 2(vi) wages can be defined as,

Wages means all remuneration (whether by way of salary, allowance or otherwise)

expressed in terms of money or capable of being do expressed which would if the terms of

employment, express or implied were fulfilled be payable to a person employed in respect of his

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employment or of work done in such employment.

Rules Relating to Payment of Wages:-

1. Responsibility for Payment of Wages (Sec. 3).

2. Fixation of wages periods and time of payment of wages (Sec. 4 & 5).

3. Mode of payment of wages (Sec. 6).

4. Deductions which may be made from wages (Sec. 7).

5. Deductions for absence from duty (Sec. 9).

6. Deductions for damage or loss (Sec. 10).

7. Deductions for services rendered {Sec. 11 & 7(2)}.

8. Deductions for recovery of advances (Sec. 12).

9. Deductions for recovery of loans (Sec. 12-A).

10. Deductions for payments to co-operative society and insurance schemes {Sec. 13 & 7(2)}.

11. imit on deduction {Sec. 7(3)}.

ined regarding:

Work performed by employee.

Wages paid to them.

Deductions from their wages.

Receipts given by them. (According to Sec. 13-A).

Their must be in the form prescribed. They shall be preserved for 3 years from the last date of

entry.

Finding:-

The industry we visited was the Chandrika firm

It was an S-S-1 producing looms it had about 500 workers working among whom about

70% were unskilled and illiterate and only about 30% were skilled.

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There workers were paid wages in the range of 3000-6000

They were paid on the monthly basis and the payments are strictly in cash.

These workers are given or paid the expenses for housing i.e. rent they get loans during

Emergencies

These loans are to be returned back within a maximum period of one year

They are provided with all the basic amenities required like fresh dinking water etc

The workers are provided with a very friendly atmosphere to working. As the worke

Completes 90days he is subject to ok bonus and on completion of 1 year they are also

given extra service.

Following is the process used to produce there product.

b.Employee State Insurance Act 1948

The Employees' State Insurance Act, 1948 (ESI Act) provides for health care and cash benefit

payments in the case of sickness, maternity and employment injury. The Act applies to all non-

seasonal factories run with power and employing 10 or more persons and to those factories whichrun without power and employing 20 or more persons. The appropriate Government may after

notification in the Official Gazette, extend the provision of the Act to any other establishment or

class of establishments, industrial, commercial, agriculture or otherwise.

Under the Act, cash benefits are administered by the Central Government through the EmployeesState Insurance Corporation (ESIC), whereas the State Governments and Union Territory

Administrations are administering medical care.

TheEmployees' State Insurance Corporation (ESIC) is the premier social security organization

in the country. It is the highest policy making and decision taking authority under the ESI Act andoversees the functioning of the ESI Scheme under the Act. The corporation comprises members

representing Central and State Governments, employers, employees, Parliament and the medical

profession. Union Minister of Labour functions as the Chairman of the Corporation. A Standing

Committee constituted from among the members of the Corporation acts as the Executive Bodyfor the administration of the Scheme.

The basic provisions of the Act are :-

Every factory or establishment to which this Act applies shall be registered within such

time and in such manner as may be specified in the regulations made in this behalf.

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It provided for an integrated need based social insurance scheme that would protect the

interest of workers in contingencies such as sickness, maternity, temporary or permanent

physical disablement, death due to employment injury resulting in loss of wages or earningcapacity.

It also provided forsix social security benefits:-

Medical Benefit

Sickness Benefit (SB)

Maternity Benefit (MB)

Disablement Benefit

Dependants' Benefit(DB)

Funeral Expenses

The Central Government may, by notification in the Official Gazette, establish a

Corporation to be known as the 'Employees' State Insurance Corporation' for the

administration of the scheme of Employees' State Insurance in accordance with theprovisions of the Act.

The Corporation may, in addition to the scheme of benefits specified in this Act, promote

measures for the improvement of the health and welfare of insured persons and for the

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rehabilitation and re-employment of insured persons who have been disabled or injured and

may incur in respect of such measures expenditure from the funds of the Corporation

within such limits as may be prescribed by the Central Government.

The contribution payable under this Act in respect of an employee shall comprise

contribution payable by the employer and contribution payable by the employee and shall

be paid to the Corporation. The contributions shall be paid at such rates as may beprescribed by the Central Government.

All contributions paid under this act and all other moneys received on behalf of the

Corporation shall be paid into a fund called the 'Employees' State Insurance Fund' which

shall be held and administered by the Corporation for the purposes of this Act.

Whoever, for the purpose of causing any increase in payment or benefit under this Act, or

for the purpose of causing any payment or benefit to be made where no payment or benefit

is authorised by or under this Act, or for the purpose of avoiding any payment to be madeby himself under this Act or enabling any other person to avoid any such payment,

knowingly makes or causes to be made any false statement or false representation, shall be

punishable with imprisonment or with fine or with both.

If the person committing an offence under this Act is a company, every person, who at the

time the offence was committed was in charge of, and was responsible to, the company for

the conduct of the business of the company, as well as the company, shall be deemed to be

guilty of the offence and shall be liable to be proceeded against and punished accordingly.

Q.4 Texas is a U.S. based multinational company. Now it is planning to enter emerging

Asian market. Being an international player what are the various challenges Texas might

face in managing international employees.

Ans:-

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Texas is U.S. companies continue to expand globally, benefits programs for their international

workforce grow in importance. Global benefits executives face a range of challenges including

delivering benefits in diverse environments and cultures, offering competitive benefits programs to

help retain employees, controlling costs and streamlining administration. Todays economic

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conditions pose additional challenges and make it more important than ever that benefits programs

are leveraged as effectively as possible to meet business objectives.

Through qualitative and quantitative research, this paper examines the key global benefits

challenges facing multinational employers and provides recommendations and action plans to helpmeet their benefits needs. Challenges include:

Developing a global benefits strategy while providing benefits that meet the varied needs

of multinational employees.

Creating a competitive benefits program to help attract and retain talent.

Finding cost-effective ways to attain and administer multinational benefits.

Building recognition for the value that global benefits management brings to a company.

Challenge 1

Developing a global benefits strategy while providing benefits that meet the varied needs of

multinational employees Multinational business is the key to the future for many companies and isoften a main opportunity for growth. In some cases, the size of their multinational employee base

equals or eclipses that of their U.S. employee population.

Most of the benefits executives interviewed experienced their share of benefits challenges as they

expanded globally, either through establishing new offices or acquisition. Many want to ensure

their employee benefits programs run smoothly and efficiently and are compliant with currentgovernment regulation. Many recognize the need for flexibility and how government mandates and

cultural factors can shape local benefits programs and employee expectations around benefits:

Action Planning for Employers:

Understand your current benefits programs Research your current domestic and

international programs. Make reviewing your plans a continuous process and not a reactiveexercise.

Define what will drive your global benefits strategy and be sure it can be clearlyarticulated

Include all individuals within your organization that are involved inglobal benefits and financial

decisions and ensure you have their commitment.

Establish a management structure Clearly define roles and responsibilities at both

headquarter and subsidiary levels. Make sure your strategy provides employees witha framework

for understanding management decisions affecting benefits.

Communicate, execute and monitor Educate all employees across the organizationaround

the details of the new strategy. Execute and monitor the effectiveness ofyour strategy.Fine-

tune your strategy Remember your strategy should be flexible; there is always room for

improvement. Feel comfortable modifying your strategy based on best practicesor lessons learned.

Challenge 2

Creating a competitive benefits program to help attract and retain talent:

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The benefits executives interviewed gauge the competitiveness of their local benefits the same way

they do in the U.S: by comparing their compensation and benefits packages offered in each country

to those of their competitors, as well as to those offered by other local and global employers whohire the same type of talent.

Most benefits executives interviewed aim to offer benefits that are in line with market standards.They want to ensure that the total compensation and benefits they offer stay within their target

zone for a given country and talent segment. Employers are seeking ways to structure

compensation and benefits that are fair and flexible enough to accommodate the unpredictablemultinational career paths their employees may follow.

Employers who set their multinational benchmarking goals well above the median or strive to be aglobal employer of choice, do so for one or more of these reasons:

They have a global image to uphold. They fall under the magnifying glass of regulatory or

public scrutiny, or their businesses (life-saving medical products or technologies, for example)depend on high levels of public trust.

They face extraordinary competitive challenges. A healthcare company that is a late entrant toseveral key international markets says it must aim above the median to attract and retain top sales

talent, in order to compete with its long-established, well-known competitors.

They rely on talent with special skill sets (engineers, healthcare specialists, etc.). They cannot

risk talent shortages and want their employees lives to be secure and comfortable enough that they

can work comfortably and productively.

They compete in areas where multinational competition can be intense and turnover rapid.Comments from the executive interviews also suggest that hiring competition is likely to be more

intense in low-cost high-competition regions. The 7th annual MetLife Study of Employee BenefitsTrends found that multinational employers anticipate greater competition for talent over the near-

term:

Action Planning for Employers:

Work with your local subsidiaries to obtain country specific benefits information.

This data will help educate you on what benefits employees value at the local level.

Research the benefits offerings of your direct competitors to help ensure your package

meets or exceeds market standards.Think more broadly on how to obtain data by leveraging networks, consultants

and associations.

Challenge 3

Finding cost-effective ways to attain and administer multinational benefits

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Even for U.S.-based companies that have operated multinationally for years, global benefits are

often treated as an add-on responsibility of existing human resources teams until thatstructure becomes unworkable due to sheer growth, or until problems emerge that reveal the need

for greater global benefits planning and administrative expertise. Employers interviewed sharedexamples of the growing pains experienced by their companies when demands for multinationalbenefits exceeded their internal expertise or managerial bandwidth:

There are a number of financial benefits including where you get a dividend. But putting thefinancial aspect on the side, what I like about it, especially if youre in a large multinational

organization, is having not only consistency, but having the data available at your fingertips from

the provider that youre working with.

Action Planning for Employers:

Continue to further your relationships with your global benefits counterparts. Work with

them to obtain data around local government regulations and trends that will help you improve youglobal benefits program.

Consider leveraging brokers, consultants, TPAs and other resources for ideas about

ultinational benefits and outsourcing.

Become more familiar with your current global benefits programs to see where multinational

pooling can benefit your overall strategy.

Engage your broker or benefits consultant to begin an RFP process with global benefits

networks to determine the best provider for a pooling solution. Periodically refresh the RFP

process to ensure these networks are providing the best possible solution and partnership.

Constantly evaluate and continue to grow your pool by recruiting more subsidiaries. This

will help further streamline administration and possibly increase your potential dividend.

Challenge 4

Building recognition for the value that global benefits management brings to a company

Global benefits decision-makers believe they bring great value to their companies by findingefficiencies, keeping actionable information and insights flowing between local and global

decision-makers and helping employees understand and appreciate the value of their benefits.

Many know that upper management recognizes the value that global benefits management canbring to solving problems and finding efficiencies,

Action Planning for Employers:

Focus on the importance of a central unit for overseeing benefits programs across alllocations. This will help develop a clearer picture of what is working and where there areareas for improvement.

Communicate how centralized global benefits management is facilitating the birth of

innovative ideas across borders.

Highlight the importance of having one central team to access data for multiple countries

(current trends, government mandates, etc).

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Discuss how adding multinational pooling and different global benefits techniques can

benefit your company and improve your benefits strategy.

Quantify the cost savings that can be achieved.

While business across borders is a norm, a global approach to multinational benefits is onlyrecently coming into focus as an issue deserving increased attention. Developing a global benefits

strategy is a critical step in moving beyond the piecemeal methods that have largely characterized

multinational benefits in the past. Once in place, key to deploying a strategy will be continuouslygathering current information about government-mandated benefits and benefits offered by

local and regional competitors. During these challenging economic times, effective management

processes will be required to leverage internal staffs and benefits solutions more efficiently.Companies that implement a global benefits strategy may see results on many levels: more

effective administrative controls and information flows; employee retention in an increasingly

competitive world economy; economies of scale through multinational pooling; and a competitive

advantage through local and global recognition as a desirable employer.

Q.5 Conflict Management is a skill that helps in resolving, employee relation issues more

efficiently; in the light of the statement suggest few measures for effective conflict

management.

Ans: - Conflict when properly managed, is a positive source of competitiveness and collaboration

in a workplace. On the other hand, when unmanaged, conflict can create division, low morale, and

chaos in the same environment. Executives and managers must learn to identify constructiveconflict and manage it effectively. Conversely, leadership must identify negative conflict and deal

with it decisively and completely.

For leaders to manage conflict effectively, they must understand all aspects of it. Identifying the

causes and exploring the effects of conflict is critical. Fortunately, managers can adopt strategies

for minimizing conflict and learn useful ways to arrive at solutions by observing conflictmanagement practices in successful corporations. Understanding and identifying the sources of

conflict as well as positive and negative aspects of conflict is the first step to good leadership.

Causes of Conflict in the Workplace

All managers and executives at some time have had to deal with conflict. The way that each one

handles discord is a determining factor of success. Initially, he or she must communicate to gain a

clear understanding of what is actually causing the conflict. Rebecca Hastings explains the needfor communication in the workplace in Conflict Management Contributes to Communication.

Hastings states that most conflicts stem from poor communication in which one party misinterprets

the words or actions of another party. She notes that communication problems are particularlyexaggerated when departments are competing for resources or when they have unique subcultures.

A critical step in solving conflict is for managers to understand that communication is one of its

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roots (Hastings). With that in mind, Hastings addresses some of the key issues that can trigger

conflict.

Different work method

Employees often have the same goal but different approaches for achieving it. Neither employeesapproach may be incorrect, nor may one approach be less productive than the other may. AsHastings notes, the ownership of the approach, or idea, is what gives each employee pride. When

approaches collide, a simple step toward resolution is for managers to encourage employees to

develop more fully their approaches. Next, managers should ask employees to propose theirrespective plans and review them as a group. According to Hastings, employees will find that

often a combination of the approaches is actually the best solution.

Different goal

Often in organizations, separate business units may drive towards different goals. For example,

the goal of a security controls department is to ensure the security of the corporation and its

customers. This goal often affects performance and work output to other business units, such asone that focuses on generating revenue. As an executive or manager, it is imperative that goals be

set at the corporate level and fully communicated to all areas of business. Jeff Weiss and Jonathan

Hughes write, One of the most effective ways senior managers can help resolve cross-unitconflict is by giving people the criteria for making trade-offs when the needs of different parts of

the business are at odds with one another (96). Therefore, if executives and managers

communicate goals and criteria effectively, two things will happen in this scenario. First, businessunits will understand the basic role and importance of security. Second, security will understand

how corporate decisions impact revenue. Clearly, management can overcome differences in goals

through effective communication

PersonalitiesDifferences between employees and managers personalities often are a source of issues. People

are sometimes annoyed by one another simply because of their looks or actions. A personsinherent biases are often contributing factors. Because everyone has biased opinions, management

should not expend resources attempting to change them. However, avoiding personality conflicts

altogether can significantly affect productivity. When two team members dont get along, theytend to exert a bare minimum of effort on one anothers behalf. This has a negative effect on your

project, as well as on team morale (Robinson). As a result, effective leaders must understand

employee biases and personality differences and partner teams and individuals to maximize

productivity.

StressStress is a huge motivator of conflict. Every employee has a breaking point, and every employee

will reach his or her breaking point at some time or another. On a good day, employees can let

issues and differences roll off their backs. However, as stress from home and work deadlines

collide, often tempers will flare. When increased stress levels are combined with time pressures,good people reach the limits of composure and civil behavior, writes Anna Maravelas (23). With

that in mind, leaders must learn to recognize the warning signs of stress in each employee and

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attempt to alleviate it. Offering employees something as simple as a break or, in more severe

cases, an afternoon off can go a long way toward relieving work-related stress.

Different viewpoints or perspectives

Individual perspectives are what give a business environment its edge. In fact, clashes betweenparties are the crucibles in which creative solutions are developed, write Weiss and Hughes (97).As a result, employers are looking for diversity in people in order to ensure different perspectives

are considered. Leaders in this situation must carefully and clearly listen to and understand the

different perspectives. This one area can be the trickiest for managers. Since managers also haveperspectives, often perspectives different from their own are misunderstood or pushed aside.

Managers and leaders must remember that at least some of their employees will likely have

different perspective

Effects of Conflict in the Workplace

In addition to understanding the causes of conflict, managers need to understand its effects. The

effects of conflict in the workplace are often wide reaching and consuming. Further, they can beuseful and beneficial or destructive and damaging. Effective leaders must differentiate between

conflict that will boost productivity and build stronger teams and conflict that will decrease output

and hinder teamwork. Clearly, managers must resolve conflict and channel it into positivecompetition and collaboration

One of the most damaging effects of workplace conflict is the personal toll it takes on employees.

Research clearly shows that employees routinely take their work home with them. A recent poll atWilliams Energy asked 75 employees, How often do you bring work home with you?

Interestingly, 58% responded that they bring work home with them weekly, 11% bring work home

only monthly, and 10% bring work home daily. In addition, 21% respondents said that they never

bring work home with them. When the poll asked the same 75 people how often conflict and

stress at home causes them to lose sleep or feel anxiety, 91% responded, Often, at least weekly.The results of these two polls clearly show that employees take their work home with them a

significant amount of time.

While taking work home has a damaging effect on employees, ineffectively managed conflict also

affects employees personally through:

Anxiety

Loss of sleep

Lowered morale

Decreased job satisfaction

In addition to taking a personal toll on employees, conflict also has adverse effects on the

workplace. Consider these benefits of managed conflict compared to the damage resulting fromout of control conflict:

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Managed Conflict Out of Control Conflict

Strengthens relationships and builds

teamwork

Damages relationships and discourages

cooperation

Encourages open communication and

cooperative problem-solving

Results in defensiveness and hidden

agendas

Resolves disagreements quickly and

increases productivity

Wastes time, money and human

resources

Deals with real issues and

concentrates on win-win resolution

Focuses on fault-finding and blaming

Makes allies and diffuses anger Creates enemies and hard feelings

Airs all sides of an issue in a positive,

supportive environment

Is frustrating, stress producing and

energy draining

Calms and focuses toward results Is often loud, hostile and chaotic

The importance of managing conflict is evident. Reducing the negative effects and increasing

the positive impacts is critical in a balanced workplace. Leaders must skirt the fine line of

reducing conflict and allow conflict to foster good results. Clearly, leadership must manage

some conflict to reduce its impact while allowing some conflict to remain unmanaged in orderto increase overall results.

Q. 6 Describe the disciplinary procedure commonly followed in Organisations.

Ans; - disciplinary procedures

Purpose and scope

This procedure is designed to help and encourage all employees to achieve and maintain standards ofconduct, attendance and job performance. The company rules (a copy of which is displayed in the ffice)

and this procedure apply to all employees. The aim is to ensure consistent and fair treatment for all inthe organisation.

Principles

Counselling will be offered, where appropriate, to resolve problems.

No disciplinary action will be taken against an employee until the case has been fully investigated.

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At every stage in the procedure the employee will be advised of the nature of the complaint against

him or her and will be given the opportunity to state his or her case before any decision is made.

At all stages of the procedure the employee will have the right to be accompanied by a trade union

representative, or work colleague.

No employee will be dismissed for a first breach of discipline except in the case of gross

misconduct, when the penalty will be dismissal without notice or payment in lieu of notice.

An employee will have the right to appeal against any discipline imposed.

The procedure may be implemented at any stage if the employee's alleged misconduct warrantssuch action.

The minimum three-step statutory procedures will be followed if an employee faces dismissal or

certain kinds of action short of dismissal

The Procedure

Stage 1 - improvement note: unsatisfactory performance

If performance does not meet acceptable standards the employee will normally be given animprovement note. This will set out the performance problem, the improvement that is required,

the timescale and any help that may be given. The individual will be advised that it constitutes the

first stage of the formal procedure. A record of the improvement note will be kept for ... months,but will then be considered spent - subject to achievement and sustainment of satisfactory

performance.

Stage 1 - first warning: misconduct

If the conduct does not meet acceptable standards the employee will normally be given a writtenwarning. This will set out the nature of the misconduct and the change in behaviour required. The

warning should also inform the employee that a final written warning may be considered if there is

no sustained satisfactory improvement or change. A record of the warning should be kept, but it

should be disregarded for disciplinary purposes after a specified period (eg, six months).

Stage 2: final written warning

If the offence is sufficiently serious, or there is a failure to improve during the currency of a prior

warning for the same type of offence, a final written warning may be given to the employee. This

will give details of the complaint, the improvement required and the timescale. It will also warnthat failure to improve may lead to action under Stage 3 (dismissal or some other action short of

dismissal), and will refer to the right of appeal. A copy of this written warning will be kept by the

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supervisor but will be disregarded for disciplinary purposes after ... months subject to achievement

and sustainment of satisfactory conduct or performance.

Stage 3 - dismissal or other sanction

If there is still a failure to improve the final step in the procedure may be dismissal or some otheraction short of dismissal such as demotion or disciplinary suspension o